CITI & REDECARD

Citi has sold 41.75 million shares of its stake in Redecard for $400
million. This development is part of Redecard’s IPO and reduces Citi to
a 25% shareholder. The financial institution’s after tax gain from the
transaction will be recorded in the 3Q07 results. Citi has over 200
million customer accounts and does business in more than 100 countries.

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Western Union and JAG Partner

Western Union has joined forces with Jobs for America’s Graduates to launch a financial literacy curriculum aimed to train and empower students The curriculum offers key insights on the inter-relationship between payments, debt, savings and money management; elements that are essential for successful financial growth. The learning program provides culturally relevant tools and stories based on Western Union’s unique experience with minority and immigrant communities. It builds a bridge from understanding bill payments, money transfers, money orders and pre-paid debit cards to building savings toward future goals, assets and entrepreneurship. Jobs for America’s Graduates is a national non-profit corporation established for the purpose of assisting states in creating a dropout prevention and school-to-career transition system for at-risk youth based on the JAG Model. The JAG Model is delivered in approximately 700 schools in urban, rural and suburban communities in 28 states serving approximately 40,000 students in the in-school and follow-up phases of the JAG program.

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Shift4 and WaveSoft Technologies Team

Shift4 Corporation and WaveSoft Technologies Corporation,have partnered to enable WaveSoft to integrate Shift4’s $$$ ON THE NET payment gateway to offer a wireless system for its customers. WaveSoft’s wBox (Wireless-in-a-box) solution allows hospitality users to setup a complete wireless POS system. The certified $$$ ON THE NET interface enables end users to seamlessly integrate credit card payment processing into their wireless handheld units with any third party point-of-sale system. WaveSoft Technologies provides wireless handheld POS solutions with open wireless and database connectivity. Shift4 is a developer of secure financial transaction processing software and services, provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and e-commerce markets.

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TransUnion & InfoCentricity Team

TransUnion announced that it has partnered with InfoCentricity to assist potential customers in evaluating the performance of “VantageScore,” both as a stand alone risk rank-ordering tool and as a decision key within current or new account management strategies. The performance evaluations will include VantageScore provided by TransUnion and additional credit bureau attributes which are matched to a customer’s masterfile. Analysis results will demonstrate VantageScore’s ability to rank-order risk on client specific performance outcomes within key subpopulations of interest, and will compare how VantageScore performs against a customer’s current rank-ordering tools. By using additional information provided by TransUnion, InfoCentricity can create a profile of the consumers that switch from one strategy treatment to another, providing a better understanding of the impact VantageScore will have on account performance and profitability. In addition, this information facilitates analysis of a VantageScore strategy compared with the customer’s existing champion strategy as well as the best design for a new challenger strategy. InfoCentricity provides software and analytic services. TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning.

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PBC CARDS

The People’s Bank of China has released 2006 figures demonstrating
the growth in bank cards. The figures show that Chinese banks have
issued over 1.23 billion bank cards, 1.08 billion of which are debit cards.
Also, in 2006, the bank card transaction volume reached 1.89 trillion
yaun, which accounts for 30% of consumer goods retail sales in major
cities. In comparison, according to the Central Bank, banks in China have
issued 50 million credit cards.

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Merchants Run Ads Ahead of House Hearing

Washington, DC-based the Merchants Payments Coalition has launched a new series of advertisements this week showing how the major credit card issuers use some of the billions they collect from the credit card “interchange” fee to pay for marketing campaigns. The ads depict a consumer buried in envelopes full of credit card junk mail, and carry the text: “Ever wonder who pays for all that credit card junk mail? You do. It comes from your credit card interchange fees. Interchange is the biggest credit card fee you’ve never heard of — and it’s dangerous.” The ads began running in Washington newspapers this morning in anticipation of a hearing on interchange fees scheduled to be held Thursday by the House Judiciary Committee’s Antitrust Task Force. The MPC is a group of nearly 30 retailer associations.

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ABECS STATISTICS

According to ABECS, between May 2006 and May 2007, the sale of
debit and credit cards rose by 20% with a volume of 12.4 billion USD.
Comparing the two months of May in and of itself, the sales volume for
May 2007 was 7% greater than that of May 2006. Also, in comparing
May 2006 to May 2007, the purchase costs to debit credit rose 16% to
reach 400 Million in May 2007. Other statistics show that from 2000 to
2006, transactions by credit and debit cards increased at a CAGR of
21.61% and 41.21% respectively.

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OCC Launches HelpWithMyBank.gov

The Office of the Comptroller of the Currency has launched “HelpWithMyBank.gov”, a new Web site dedicated to providing answers and assistance to national bank customers. “HelpWithMyBank.gov” provides answers to common questions based on thousands of calls made to the OCC Customer Assistance Group each year. The site presents information in straightforward easy-to-use terms in a simple question-and-answer format. Topics include credit cards, interest rates, check cashing, late payments, mortgages, and many others. The site also provides guidance on how to determine if a bank is a national bank or operating subsidiary and who to contact if the bank is not. The Office of the Comptroller of the Currency was created by Congress to charter national banks, to oversee a nationwide system of banking institutions.

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TESCO ATM DEPLOYMENT

Tesco Personal Finance will be expanding the deployment of its Euro ATM
in response to the popularity of the ATM solution. The trial introduction of
4 initial ATMs will now be increased by 20 allowing for easy access to Euros
for travelers in the United Kingdom. The Euro ATMs are to be located near
transport hubs at Tesco branches in Ashford, Gatwick, Long Eaton,
Altrincham, Glasgow (Silverburn), Bury, Hemel Hempstead, Chester,
Finchley, Aylesbury, Port Glasgow, Dover, Hatfield, Andover and Newton
Abbott. A further five will be opened over the next few weeks across
Northern Ireland.

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G&D Receives ISO 9001 Certification

Giesecke & Devrient has received ISO 9001 certification for its card-based operations in Virginia and Ohio. Giesecke & Devrient has received ISO 9001 certification for its card-based operations in Virginia and Ohio. The international ISO 9001 certification validates that business processes and procedures are performed in accordance with the highest quality management standards and incorporate consistent review to ensure adherence to the policies. The practices outlined in this international quality management system standard are used across industries to demonstrate a level of commitment to quality. Giesecke & Devrient is a provider of smart cards, providing smart card based solutions for the fields of telecommunications, electronic payment, health care, ID, transit, and Internet security.

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BARCLAYS NAKUMATT VISA

Barclays Bank and Nakumatt Holdings have introduced a credit card that
provides cardholders with Nakumatt benefits, according to The Standard
Business News. Benefits offered the cardholder include interest rates from
2.5%, 50 days interest free credit, flexible payments of a minimum of
10% after the interest free period, and bonus “Smart” points to be awarded
monthly. One “Smart” point is to be awarded for every Sh100 worth of
shopping in Nakumatt and one Smart point for every Sh500 spent anywhere
else. Barclaycard currently has 65% of the share in the credit card market
with 60,000 issued cards.

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Monthly Payment Rates Head Lower

Monthly payment rates continued to spiral downward during June, falling to its lowest level in two years. The MPR, or the amount that cardholders pay on their credit card debt each month, peaked in October of last year, reaching almost 21%. The higher payment rates were driven by new minimum payment standards. According to CardData, the MPR declined to 17.99% in June, compared to 19.01% in the prior month and 19.99% one-year ago. While the dip historically has been seasonal, it appears that many borrowers are increasingly pressured by current economic factors. The combination of higher interest rates and a cooling off of the real estate market diminished the attractiveness of “cash out” refinancing activity in which many borrowers reduced their more expensive credit card debt by drawing on the equity in their home — either by refinancing their mortgages or by accessing their home equity lines of credit.

MONTHLY PAYMENT RATES
Jun 06: 19.99%
Jul 06: 20.46%
Aug 06: 20.20%
Sep 06: 20.02%
Oct 06: 20.83%
Nov 06: 20.01%
Dec 06: 19.70%
Jan 07: 19.88%
Feb 07: 18.79%
Mar 07: 18.21%
Apr 07: 18.04%
May 07: 19.01%
Jun 07: 17.99%
Source: CardData (www.carddata.com)

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